Facebook Inc. (FB) Makes $20M ‘Sponsored Stories’ Offer

Facebook Inc.Facebook Inc. (NASDAQ:FB) has been working to improve its revenue streams. One of the ways it has been working on developing has been “Sponsored Stories,” where certain advertisers pay for specialized posts that would appear in users’ News Feeds – the more the advertisers pay, the more users that would see the post However, something in the program caused more than 100 million users to have their “likes” posted as part of the “Sponsored Stories,” and Facebook Inc. (FB) has been looking to put aside a lawsuit.

There was a class action lawsuit filed against Facebook Inc. (NASDAQ:FB) over its “Sponsored Stories” program, as the class claimed in its 2011 lawsuit that the Web site violated California state law by making users’ “likes” of “Sponsored Stories” advertisers public without paying the users or give them a way to opt-out of the program. In a new settlement offer, Facebook Inc. (FB) is offering $20 million to cover legal fees and give users in the class about $10 each.

Facebook Inc. (NASDAQ:FB) is making this new offer after an original $10 million offer was rejected by U.S. District Judge Richard Seeborg, mainly because none of the money was earmarked for the class – instead was to be set aside to charities that work with Internet privacy issues.

“We believe the revised settlement is fair, reasonable, and adequate and responds to the issues raised previously by the court,” said Facebook spokesman Andrew Noyes. As part of the settlement, Facebook Inc. (NASDAQ:FB) would offer to give users more control over how their preferences and identities are used in similar programs and services.

With all of the market cap that Facebook Inc. (NASDAQ:FB) currently owns, a $20 million settlement should barely make a ripple on the bottom line, though it is a bit of a public-relations issue for “Sponsored Stories,” which was designed to be a source of revenue. Investors like billionaire fund manager Jeffrey Vinik of Vinik Asset Management will likely watch to see if this $20 million ends up ending the revenue stream or just modifies the plan.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!